Transcript Lean In Financial Services

the why, what, and how of streamlining processes
Anshuman Tiwari
Head of Process Consulting, India, HSBC | Fellow, American Society for Quality
All views expressed here are the presenter’s personal views and not of HSBC or his previous employers.
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60% people in South & East Asia don’t use any formal/informal financial services
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Reducing cost to serve only slightly will help banks add $35 Bn in Revenues
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Banks and Financial Institutions have a huge opportunity if they can reduce costs
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Source: http://blogs.marketwatch.com/
Source: http://www.economist.com/
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Many fines and settlements could have been avoided if processes were followed.
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While more compliance is essential – customers want faster and better service
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Money paid in fines and settlements was diverted from processes and systems!
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Lean Summit 2014 – Lean Management Institute of India
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 Since the GFC banks and other financial institutions have changed permanently
 Smaller banks in developing economies are better placed than large global banks
 Regulation continues to strangle organizations and this varies across the world
 Banks may have to collaborate more and also understand their own business
models better
 US$ still dominates but US banks no longer dominate global commerce
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 Steady rise in Lean and Lean Six Sigma and a steady decline in Six Sigma
 51 results on Lean in Financial Services at Amazon.com
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 Manage long tails in processes
 Speed and Accuracy – together!
 Focus on idle time – don’t always tinker with the process
 No Tech / Low Tech / High Tech
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The Progressive Corporation is one of the largest providers of car insurance in the United States. Progressive has expanded
internationally as well, offering car insurance in Australia.
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In billions
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6
9.5 bn
r
High
Highgrowth
growthIndustry
Industry
Diversification
Diversification
r
Global
GlobalExpansion
Expansion
r
Acquisition
Acquisition
r
Advertising
Advertising
r
4
2
1.3 bn
1992
1994
1996
1998
2000
2002
Source: Faster Better Smarter, Michael Hammer
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Reduced Claims Processing TAT  High customer satisfaction rates  High Customer Retention ratios
Cost of storing damaged vehicle or renting a car : $ 28 per day  Benefits multiplied by 10,000 claims per day
Customers accept lower settlement if settled quickly
Source: Faster Better Smarter, Michael Hammer
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Lean Summit 2014 – Lean Management Institute of India
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 True e2e Improvement and Cancer at intersections
 More Gemba … as much as you can!
 War Room - standing meetings, project on a chart and
post-its, large white boards, NO PowerPoints
 Project management of improvement projects - PMP and
improvement project management must align
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 Banks have a huge opportunity to bank the unbanked
 Fines and settlements could be avoided by compliance and better processes
 Managing process tail along with speed and accuracy are vital
 True e2e projects and more Gemba will help
 War room setups help in fast tracking projects
 Lean is very suitable for projects in BFSI
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Lean Summit 2014 – Lean Management Institute of India
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